PATRICK OGANWU
& ASSOCIATES (Legal Practitioners, Arbitrators & Notary Public)
Our Ref:
10 DECO ROAD,
Your Ref: P.O. BOX 111, WARRI
DELTA STATE, NIGERIA
MOBILE: 070-89148284
E- MAIL: patrickoganwu@yahoo.com
THE MANAGING DIRECTOR
EMVAL NIGERIA LIMITED,
LEGAL OPINION ON DEMAND NOTICES
(SG & LG)
The taxes and levies (approved list for collection) Act, LFN (2004) Cap. T2, clearly
stipulate the areas wherein the three tiers of government can collect taxis and levies.
Part II of the Act itemized the list for state as follows:
1. Personal income tax in respect of:
a. Pay-As-You-Earn (PAYE); and
b. Direct taxation (self-assessment).
2. Withholding tax (individuals only).
3. Capital gains tax (individuals only).
4. Stamp duties on instruments executed by individuals.
5. Pools betting and lotteries, gaming and casino taxes
6. Road taxes.
7. Business premises registration fee in respect of –
a. Urban area as defined by each State, maximum of –
i. N10,000 for registration; and
ii. N5,000 per annum for renewal of registration; and
b. Rural areas –
i. N2,000 for registration; and
ii. N1,000 per annum for renewal of registration.
8. Development levy (individuals only) not more than N100 per annum on all taxable
individuals.
9. Naming of street registration fees in the State Capital.
10. Right of Occupancy fees on lands owned by the State Government in urban areas
of the State.
11. Market taxes and levies where State finance is involved.
Part III also itemized the list for which the local government can collect tax and levies,
they are:
1. Shops and, kiosks rates.
2. Tenement rates.
3. On and off liquor licence fees.
4. Slaughter slab fees.
5. Marriage, birth and death registration fees.
6. Naming of street registration fee, excluding any street in the State Capital.
7. Right of Occupancy fees on lands in rural areas, excluding those collectable by the
Federal and State Governments.
8. Market taxes and levies excluding any market where State finance is involved.
9. Motor park levies.
10. Domestic animal licence fees.
11. Bicycle, truck, canoe, wheelbarrow and cart fees, other than a mechanically
propelled truck.
12. Cattle tax payable by cattle farmers only.
13. Merriment and road closure levy.
14. Radio and television licence fees (other than radio and television transmitter).
15. Vehicle radio licence fees (to be imposed by the local government of the State in
which the car is registered).
16. Wrong parking charges.
17. Public convenience, sewage and refuse disposal fees.
18. Customary burial places establishment permit fees.
19. Religious places establishment permit fees.
20. Signboard and advertisement permit fees.
The above law is the extant law regulating taxes and levies in Nigeria as at today.
In furtherance to the aforementioned provision of the law, the Delta State government
made the Delta State Internal Revenue Service Law, 2020, which stipulate the tax, fines
and levies payable to the State and Local Governments.
Annexure xxxviii of the Delta State Internal Revenue Service Law, 2020 made provision
for all categories of sign/bill board and the amount payable per annum; the price payable
is dependent on the area covered by the said sign post/bill board. If the bill board covers:
(1) Up to 1.0 sq meters = 10, 500
(2) Up to 3.0 sq meters = 13, 500
(3) Up to 5.0 sq meters = 15, 500
(4) Up to 7.0 sq meters = 17, 500
(5) Up to 10.0 sq meters = 23, 500
(6) Up to 13.0 sq meters = 27, 500
So, if the office sign post/bill board covers the above range, above is the amount payable
per year nothing more nothing less.
Annexure iv, makes provision for fees payable for Gaseous emission, environmental
pollution & efficient discharge, and classifies the companies into group, and the
company/business not classified is liable to pay N10, 000 per annum and nothing else
like your Company.
Our company is not a construction company neither an oil servicing company as
envisaged in the demand notice and so the said fees not applicable.
Annexure xxvi, empowers the local government to levy, public convenience, sewage and
refuse disposal fees at N20,000 per annum and not N40,000 per annum.
The local government is also empowered to levy tenement rates on facilities the amount
payable depending on the use the property is put to. The maximum amount payable per
annum for a building is N30,000. I think this is applicable to the Company.
Annexure v, makes provision for fire safety certificate and the sum levied is
commensurate.
Annexure xvii, makes provision for trade/business registration and renewal levies. Our
company’s business is not itemized so we come under other miscellaneous, which fees is
estimated to the tune of N40,000.
Annexure xix, also makes provision for General environmental management fees
N50,000 per annum, environmental sanitation fee N120,000 and ferrous, non-ferrous
metallic activities to the tune of N250,000 per annum. Therefore, the Company is
expected to pay, N50,000 naira for general environmental management fees and not
N150,000 for same, including the rest.
Annexure xxxi makes provision for fees applicable for construction of mast and renewal
of same, and the one applicable to our company, is accessed at N50,000 per mast.
All other levies not contained above is not applicable to the company as same is not
known to law or has been overtaken by event, Section 84(2) of the Delta State Internal
Revenue Service Law, (2020) states as follows:
(2) If the provision of any other law relating to the charging and collection of revenue are
inconsistent with the provisions of this law, the provisions of this law shall prevail, and
the provisions of that other law shall, to the extent of its inconsistency be void.
Flowing from the above, the below mentioned taxes and or levies is not contained under
the Law regulating the collection of taxes and levies, and they are:
(1) Operational levy
(2) Private firm enterprise
(3) Temporary structures
(4) Professional services
(5) Business premises renewal
Attached for your perusal is the aforementioned Law.
Thanks.
_______________
S. P. Siketi, Esq.,
